Good afternoon, it is September 8th 2020 and here is your economic and market update from BlackBee.
- Pound sinks on concerns of no-deal Brexit.
- Ireland Q2 GDP figure released.
- Trump focuses on China with election nearing.
Following the sell-off in the US, led by tech stocks on Thursday and Friday, European stocks climbed on Monday as the Stoxx Europe 600 gained 1.67%. US markets were closed for labour day holiday. The pound fell on concerns of a no-deal Brexit. The pound fell 0.9% against the dollar and 0.7% against the euro. Source: Bloomberg.
Figures released from the Central Statistics Office yesterday showed that GDP in Ireland contracted by -6.1% in Q2 2020, indicting that Ireland is in a recession. GDP in Q1 2020 contracted by -2.1%. Two successive quarters of GDP contraction indicates a recession. The contraction in GDP is the largest on record for Ireland, however, in comparison to other counterparts, Ireland’s GDP contraction was not as severe. In the US, GDP contracted by -31.7% in Q2 2020, Germany’s GDP contracted -11.3% and the UK saw a -21.7% contraction. Minister for Finance, Paschal Donohoe, stated that indicators that are available to the government have shown a very strong pick up in Q3.
As the Presidential Election nears, the possibility of the US decoupling from China was raised in a speech yesterday by President Trump. Despite both the US and China recently reaffirming their commitment to phase one of the trade deal, President Trump said that American companies that create jobs abroad would be punished and US companies that did business with China would be prevented from winning federal contracts. Trump also mentioned the possibility of ‘Made in America’ tax credits and that US companies who create jobs in China could have tariffs imposed on them with the aim of bringing jobs back to the US.
There are no Best & Worst Performing Large Cap US Stocks today as markets in the US were closed yesterday for Labour Day.
Global Market Update
(as at close of markets 07/09/2020)